The bill amends New Jersey's tax credit legislation for businesses, focusing on compliance and employee time commitments. It mandates that businesses receiving tax credits submit an annual certificate of compliance to verify they maintain the required number of full-time jobs. If a business fails to meet these job retention requirements, their tax credits will be proportionately reduced. The bill also allows businesses to waive the requirement for full-time employees to spend at least 60% of their time at the business facility under certain conditions, including a minimum time commitment and a payment to support local economic initiatives. Additionally, starting April 1, 2024, businesses outside enhanced areas can reduce this requirement to 40% in exchange for extending their project maintenance period and making a non-refundable payment.

Moreover, the bill clarifies eligibility for tax credits related to capital investments, ensuring businesses demonstrate a net positive benefit to the state and municipalities while establishing specific thresholds for capital investments and employment levels. It prohibits businesses from receiving tax credits if they are already benefiting from other employment incentive agreements. The legislation also outlines conditions for tax credit forfeiture based on employee counts and introduces provisions for businesses to request reductions in required employees due to the pandemic. Overall, the bill aims to provide flexibility for businesses while ensuring accountability and support for local economic development initiatives.

Statutes affected:
Introduced: 34:1B-120, 34:1B-129, 34:1B-209, 34:1B-247
Advance Law: 34:1B-120, 34:1B-129, 34:1B-209, 34:1B-247
Pamphlet Law: 34:1B-120, 34:1B-129, 34:1B-209, 34:1B-247